How are AIS covered call max profit and max loss calculated?

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the AIS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 69.30%), the computed maximum profit is $737.50 per contract and the computed maximum loss is -$8,261.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIS covered call?

The breakeven for the AIS covered call priced on this page is roughly $82.63 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AIS market-implied 1-standard-deviation expected move is approximately 19.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIS implied volatility affect this covered call?

AIS ATM IV is at 69.30% with IV rank near 19.83%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

AIS Covered Call Strategy

AIS (VistaShares Artificial Intelligence Supercycle ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This actively managed exchange-traded fund (ETF) is designed to achieve its investment objective by strategically allocating capital to a diversified portfolio of artificial intelligence (AI) companies across the globe. The sub-adviser's strategy is to manage the fund's assets in pursuit of returns that mirror those of the BITA VistaShares Artificial Intelligence Supercycle Index. Under typical market conditions, the fund commits a minimum of 80% of its net assets, including any funds borrowed for investment, to AI-focused enterprises.

AIS (VistaShares Artificial Intelligence Supercycle ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $249.0M, a beta of 3.02 versus the broader market, a 52-week range of 27.32-88.795, average daily share volume of 554K, a public-listing history dating back to 2024. These structural characteristics shape how AIS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.02 indicates AIS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a covered call on AIS?

A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.

Current AIS snapshot

As of June 30, 2026, spot at $85.35, ATM IV 69.30%, IV rank 19.83%, expected move 19.87%. The covered call on AIS below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this covered call structure on AIS specifically: AIS IV at 69.30% is on the cheap side of its 1-year range, which means a premium-selling AIS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.87% (roughly $16.96 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIS should anchor to the underlying notional of $85.35 per share and to the trader's directional view on AIS etf.

AIS covered call setup

The AIS covered call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIS near $85.35, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIS chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AIS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$85.35	long
Sell 1	Call	$90.00	$2.73

AIS covered call risk and reward

Net Premium / Debit: -$8,262.50
Max Profit (per contract): $737.50
Max Loss (per contract): -$8,261.50
Breakeven(s): $82.63
Risk / Reward Ratio: 0.089

Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.

AIS covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AIS. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$8,261.50
$18.88	-77.9%	-$6,374.47
$37.75	-55.8%	-$4,487.45
$56.62	-33.7%	-$2,600.42
$75.49	-11.6%	-$713.40
$94.36	+10.6%	+$737.50
$113.23	+32.7%	+$737.50
$132.10	+54.8%	+$737.50
$150.97	+76.9%	+$737.50
$169.84	+99.0%	+$737.50

When traders use covered call on AIS

Covered calls on AIS are an income strategy run on existing AIS etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

AIS thesis for this covered call

The market-implied 1-standard-deviation range for AIS extends from approximately $68.39 on the downside to $102.31 on the upside. A AIS covered call collects premium on an existing long AIS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AIS will breach that level within the expiration window. Current AIS IV rank near 19.83% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AIS at 69.30%. As a Financial Services name, AIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIS-specific events.

AIS covered call positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AIS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIS alongside the broader basket even when AIS-specific fundamentals are unchanged. Short-premium structures like a covered call on AIS carry tail risk when realized volatility exceeds the implied move; review historical AIS earnings reactions and macro stress periods before sizing. Always rebuild the position from current AIS chain quotes before placing a trade.

Frequently asked questions

What is a covered call on AIS?: A covered call on AIS is the covered call strategy applied to AIS (etf). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With AIS etf trading near $85.35, the strikes shown on this page are snapped to the nearest listed AIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AIS covered call max profit and max loss calculated?: Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the AIS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 69.30%), the computed maximum profit is $737.50 per contract and the computed maximum loss is -$8,261.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIS covered call?: The breakeven for the AIS covered call priced on this page is roughly $82.63 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AIS market-implied 1-standard-deviation expected move is approximately 19.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a covered call on AIS?: Covered calls on AIS are an income strategy run on existing AIS etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
How does current AIS implied volatility affect this covered call?: AIS ATM IV is at 69.30% with IV rank near 19.83%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.